Mortgage application volume fell a dramatic 12.8%, on an adjusted basis, in the week ending Nov. 29, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
The survey results include an adjustment for the Thanksgiving holiday. On an unadjusted basis, volume decreased 40% compared with the previous week.
Refinancing volume also continued to fall last week, dropping 18% from the previous week to reach its lowest level since the week ending Sept. 6. The refinance share of mortgage activity decreased to 63% of total applications from 66% the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at 8% of total applications.
The seasonally adjusted Purchase Index, which forecasts incoming volume, decreased 4% from one week earlier, on an adjusted basis, and decreased 36% on an unadjusted basis compared with the previous week, and was 37% lower than the same week one year ago.
Rising interest rates continue to be the primary factor driving down volume. The average rate for a 30-year fixed-rate mortgage with conforming loan balance ($417,000 or less) increased to 4.51% last week, compared to 4.48% the week prior.
The average rate for a 30-year fixed-rate mortgage with jumbo loan balance (greater than $417,000) also increased, reaching 4.49% compared to 4.48% the previous week.
The average rate for a 30-year fixed-rate mortgage backed by the Federal Housing Administration increased slightly to 4.17% compared to 4.16% the week prior.
The average rate for 15-year fixed-rate mortgages increased to 3.56% from 3.52%.
The average rate for a 5/1 ARM decreased to 3.09% from 3.18%.
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